Very Group IPO: Everything you need to know about Very
Oliver Brett September 24, 2021 9:51 PM
Once known as Shop Direct, the UK online shopping giant Very Group is said to be lining up Barclays, Morgan Stanley and UBS to assist in its IPO. Read on as we explain more about the Very Group initial public offering (IPO).
When will Very Group go public?
The Very Group float has no fixed date as it stands. It would likely proceed before the end of 2022 unless the company rethinks its strategy.
In August 2021, it launched a £575 million bond as part of a concerted effort to reorganise its balance sheet.
The company’s owners may yet be tempted to change course completely by issuing a private sale of some stock while maintaining majority ownership but market commentators believe that is the less likely option.
How much is Very Group worth?
According to a Sky News report in August 2021, Very Group is aiming to achieve a £4 billion flotation.
At the start of the year, most commentators were putting a value on its float at around the £3 billion mark.
And considering it was worth £1.5 billion in January 2020, it is clear just how much the pandemic has done for the brand, with shoppers forced to explore online options.
How to trade stocks at City Index
You can trade stocks with City Index using spread-bets or CFDs, with spreads from 0.1%. Follow these easy steps to start trading now.
- Open a City Index account or log-in if you’re already a customer.
- Search for the company you want to trade on our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade
Did you know? Our award-winning platforms and mobile apps offer advanced tools, charting and multi-device trading.
What does Very Group do?
Very Group is a multi-brand online retailer and financial services provider based in Liverpool, England, serving the UK and Ireland.
It was established in November 2005 through the merger of Littlewoods and Shop Direct.
Ongoing restructuring and modernisation of the company has resulted in Very Group emerging as one of the largest online retailers in the UK. Its success has principally been driven through the very.co.uk app and website.
Best known for its wide range of clothing, very.co.uk also offers toys, sports equipment, home and garden furniture, gaming and jewellery. Customers can purchase goods on credit through a “buy now, pay later” scheme.
How does Very Group make money?
As one of the most successful and largest online retailers in the UK, Very Group has developed a strong reputation as a reliable go-to for customers who favour online shopping.
Very Group makes money in the way any retailer does, by pricing in a profit margin on the goods it sells to customers.
The majority of its sales come from mobile devices, and it also offers financial services, such as loans and insurance.
What is Very Group’s business strategy?
As much as very.co.uk has been a success, Very Group has had to carefully bring about a “managed decline” of its other chief flagship brand, Littlewoods.
Very Group’s business strategy is massively focused towards marketing very.co.uk but it is not yet ready to wield the axe over Littlewoods. That’s partially because the credit terms applying to many Littlewoods customers are distinct to those on offer at very.co.uk.
- Analysis: Our full guide to the latest IPOs and SPACs
- Read More: What is an IPO and how do they work?
- Trade IPOs: Take a position with CFDs
Very Group also operates some other brands, including Woolworth’s – an online-only portal now after spending decades close to the affections of British shoppers as a well-known discount chain.
Very Exclusive sells luxury fashion while the Group also sells an own-brand fashion label, V by Very, alongside Ladybird for children. In October 2018, it closed a handful of stores branded The Outlet, stocking discounted surplus goods, plus the website Bargain Crazy.
Is Very Group profitable?
Very Group posted strong profits in its most recent sales figures released in October 2020.
Demonstrating how it had used the pandemic as a spur for growth amid a sea change in people's shopping habits, it announced a series of highly impressive numbers.
Retail sales increased 10.5% to £1.23 billion, driving revenue growth of 2.9% to £2.05 billion. Customer numbers accessing the online platform increased even more spectacularly, up 14.1% to 3.4m.
The Group recorded profit before tax of £48m and underlying EBITDA of £264m, each including Covid-19 related costs.
Who owns Very Group?
Very Group is owned by the Barclay family, proprietors of the Daily Telegraph and former owners of London's Ritz Hotel.
The Sunday Times Rich List of 2020 estimated the family’s wealth at £7 billion. They are notoriously reluctant to speak to the media and have also been accused of tax avoidance by placing assets under ownership of companies registered abroad and controlled through trusts.
Aidan Barclay, son of the late Sir David and nephew of Frederick, collectively known as the Barclay Twins or Barclay Brothers, manages the family’s interests.
Board of Directors of Very Group
- Henry Birch, Group CEO
- Ben Fletcher, Group CFO
- Matt Grest, Group CIO
- Phil Hackney, Group COO
- Tommy Jordan, Financial services CEO
- Sam Perkins, Managing director, retail
- Sarah Willett, Chief people officer
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.